Latest news with #STRT
Yahoo
5 days ago
- Automotive
- Yahoo
Nissan Halts US Production for Canada Amid Rising Tariff Row
Nissan Motor Co., Ltd. NSANY has temporarily halted production of three vehicle models in the United States destined for the Canadian market due to escalating trade tensions between the two countries, per Reuters. The Japanese automaker stopped assembling the Pathfinder and Murano SUVs in Tennessee and the Frontier pickup in Mississippi for Canadian export. Although Nissan did not disclose the exact timing or expected duration of the suspension, it described the move as production pause, first reported by Japan's Nikkei, comes in response to a tariff dispute triggered by the Trump administration's 25% tax on auto imports introduced in April. Canada responded with its tariffs on American-made vehicles. The trade restrictions disrupted cross-border vehicle shipments and prompted manufacturers like Nissan and Mazda to adjust their production confirmed that the affected models had previously been built in the United States and exported to Canada, but the new tariffs have made this economically unviable for now. As a result, production for the Canadian market has been put on hold indefinitely. Similarly, Mazda ceased production for Canada at its Alabama plant in May and shifted its focus to the U.S. of Nissan's Canadian sales, about 80%, come from vehicles produced in Mexico and Japan, such as the Versa, Sentra and Rogue. The company sold approximately 104,000 vehicles in Canada last fiscal year, which represents just 3% of its global remains uncertain whether future U.S.-Canada trade talks will ease the tariff situation or if other automakers will take similar steps. The impact on Canadian dealers and vehicle availability is still is facing broader financial stress. Amid declining sales and an aging lineup, the company has reportedly asked some suppliers to postpone payments to help improve cash flow. Though Canada represents a relatively small portion of Nissan's global business, the disruption highlights the deeper financial and operational challenges it faces. The automaker reported a net loss of $4.5 billion in the fiscal year ending March and is dealing with nearly $4.8 billion in debt due this year. NSANY carries a Zacks Rank #4 (Sell) at better-ranked stocks in the auto space are Strattec Security Corporation STRT, Aisin Corporation ASEKY and Westport Fuel Systems Inc. WPRT. While STRT and ASEKY sport a Zacks Rank #1 (Strong Buy) each at present, WPRT carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 Zacks Consensus Estimate for ASEKY's fiscal 2026 sales and earnings implies year-over-year growth of 6.3% and 62.22%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 34 cents and 47 cents, respectively, in the past 60 days. The Zacks Consensus Estimate for WPRT's 2025 earnings implies year-over-year growth of 40.93%. EPS estimates for 2025 and 2026 have improved 44 cents and 23 cents, respectively, in the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nissan Motor Co. (NSANY) : Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Automotive
- Yahoo
Stellantis' 1.2M Ram Trucks Under Scrutiny for BTSI Failures
Stellantis N.V. STLA is under investigation by the U.S. National Highway Traffic Safety Administration (NHTSA), which has initiated a recall query involving nearly 1.2 million of the company's Ram trucks. The query targets Ram 1500, 2500, 3500, 4500 and 5500 models from the 2013 to 2018 model years. Per NHTSA, the agency received 14 vehicle owner questionnaire submissions and six reports involving deaths or injuries through its Early Warning Reporting system, all indicating failures in the Brake Transmission Shift Interlock (BTSI) system. A malfunction in the BTSI system could result in the unintended movement of a vehicle due to rollaway vehicles now under review were previously included in recalls intended to fix a defect that could cause the BTSI locking pin to stick. This defect may allow the vehicle's transmission to shift out of the Park position without the need to press the brake pedal or, in some cases, without even inserting the key into the ignition. Such unintended shifting from Park could cause the vehicle to roll away, posing serious safety NHTSA, the current recall query aims to evaluate whether the prior recall fixes were effective, to understand the underlying cause of these continued rollaway events and to determine if other factors may be compromising the proper function of the BTSI separate news, Stellantis is also facing significant production setbacks in Italy. Per the FIM-CISL autoworkers' union, the company experienced a 34% drop in passenger car production during the first half of 2025. Stellantis, which produces well-known brands, such as Fiat, Alfa Romeo and Jeep in Italy, also saw a 16% year-over-year decrease in commercial vehicle output during the same the first half of the year, Stellantis manufactured 221,885 vehicles, including both passenger and commercial models, reflecting a 26.9% decline compared to the same timeframe in 2024. Per the union, all Stellantis car plants in the country are experiencing serious deterioration, with no signs of production recovery expected before the end of the year. STLA carries a Zacks Rank #3 (Hold) at better-ranked stocks in the auto space are Strattec Security Corporation STRT, Aisin Corporation ASEKY and Dana Incorporated DAN. While STRT and ASEKY sport a Zacks Rank #1 (Strong Buy) each, DAN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 Zacks Consensus Estimate for ASEKY's fiscal 2026 sales and earnings implies year-over-year growth of 6.3% and 62.22%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 34 cents and 47 cents, respectively, in the past 60 days. The Zacks Consensus Estimate for DAN's 2025 earnings implies year-over-year growth of 65.96%. EPS estimates for 2025 and 2026 have improved 26 cents and 11 cents, respectively, in the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-06-2025
- Automotive
- Yahoo
How Well is Strattec's Business Model Insulated From Tariff Pressures?
One of the most favorable aspects of StrattecSecurity STRT is that more than 90% of its sales in the United States qualify for tariff-free or reduced-tariff rules. This shields Strattec, a focused automotive technology supplier, from additional expenses that other players might face if there is a rise in tariffs on imports, especially if the U.S. tightens trade rules again. Also, this gives the company a cost advantage and more stability. STRT confirmed on its latest earnings call that only 6% of its total sales are expected to be affected by the latest tariffs. This further justifies the solid business model of the company, which is less susceptible to major financial damage from tariffs. Notably, Strattec has already taken actions to deal with even that nominal proportion of its business that might get affected by tariffs. STRT is now changing the way products are shipped so that there is no need to cross borders more than necessary, thereby saving money. Also, to adjust pricing and find better sources for materials, the company is working with suppliers and customers. These actions have already helped Strattec reduce its additional costs by roughly 30%. Both American Axle & Manufacturing Holdings, Inc. AXL and BorgWarner BWA operate in business lines that overlap as automotive technology suppliers. However, they each focus on different areas of vehicle systems. It's worth noting that while AXL is in a decent position when it comes to tariffs, it isn't as well-prepared as Strattec. About 90% of the products AXL manufactures in the United States follow USMCA trade rules, which help avoid most tariffs. BorgWarner, on the other hand, has made it clear that tariffs will hurt its profits this year, and it has included those costs in its full-year financial forecast. However, instead of finding ways to avoid or reduce these extra costs — like changing suppliers or shipping routes — BWA mainly plans to deal with the impact by passing the costs on to its customers. Shares of STRT have jumped 145.1% over the past year against the 0.6% decline of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, STRT trades at a trailing 12-month price-to-earnings (P/E) of 11.18x. This is below the broader industry average of 27.09x. Image Source: Zacks Investment Research The Zacks Consensus Estimate for STRT's fiscal 2025 earnings hasn't witnessed any revisions over the past seven days. Image Source: Zacks Investment Research STRT stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BorgWarner Inc. (BWA) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-06-2025
- Automotive
- Yahoo
Stellantis Recalls 250K Vehicles in the US Due to an Airbag Defect
Stellantis N.V. STLA is recalling 250,651 vehicles in the United States because of a defect in the side curtain airbags that may not be properly sealed, per the U.S. National Highway Traffic Safety Administration (NHTSA). The recall covers specific 2022–2025 Pacifica and Voyager NHTSA, if the air bag cannot maintain sufficient pressure, it could raise the risk of passenger ejection and injury in a crash. Dealers will inspect and, if needed, replace the side curtain airbags at no cost to has not received any reports of injuries or crashes linked to the issue and advised customers to follow the recall notice the first quarter of 2025, Stellantis reported net revenues of €35.8 billion, down 14% from the first quarter of 2024. This drop was mainly driven by reduced shipment volumes, along with an unfavorable product mix and pricing environment. Consolidated shipments fell 9% to 1.22 million units, largely due to lower production in North America caused by extended holiday shutdowns in January, ongoing product transitions and weaker demand for light commercial vehicles in Enlarged in Europe, the company began to regain market share thanks to seven major new product launches. Its first-quarter 2025 market share rose to 17.3%, up 190 basis points from the fourth quarter of 2024, reaching its highest level since the first quarter of changes in the tariff policy landscape compared to when Stellantis originally set its 2025 outlook have led the company to take the cautious step of temporarily suspending its financial guidance. Stellantis carries a Zacks Rank #3 (Hold) at better-ranked stocks in the auto space are Strattec Security Corporation STRT, Allison Transmission Holdings, Inc. ALSN and Ferrari N.V. RACE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 Zacks Consensus Estimate for ALSN's 2025 earnings implies year-over-year growth of 6.26%. EPS estimates for 2025 and 2026 have improved 54 cents and 53 cents, respectively, in the past 60 Zacks Consensus Estimate for RACE's 2025 sales and earnings implies year-over-year growth of 13.56% and 7.97%, respectively. EPS estimates for 2025 and 2026 have improved 29 cents and 33 cents, respectively, in the past seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Strattec vs. Dorman Products: Which Stock is a Better Buy Right Now?
Strattec Security STRT and Dorman Products, Inc. DORM are U.S.-based auto parts manufacturers whose revenues depend on vehicle production and aftermarket demand, making them key suppliers in the broader automotive ecosystem. Over the past year, STRT has risen 145.1%, outperforming DORM's 37.7% growth. However, this outperformance alone doesn't necessarily put Strattec in a stronger position than Dorman Products. To build a solid investment case, it's important to dive deeper into the underlying business fundamentals and long-term outlook of both companies. One-Year Price Chart Image Source: Zacks Investment Research One of the most favorable points for Strattec currently is that more than 90% of what it sells in the United States qualifies for tariff-free or reduced-tariff rules. This shields Strattec, a focused automotive technology supplier, from additional expenses that other players might face if there is a rise in tariffs on imports, especially if the U.S. tightens trade rules again. Additionally, this provides the company with a cost advantage and increased stability. STRT confirmed on its latest earnings call that only 6% of its total sales are expected to be affected by the latest tariffs. This further justifies the firm's solid business model, which is less susceptible to major financial damage from tariffs. Dorman Products, however, is significantly exposed to geopolitical and trade risks owing to its continued reliance on Chinese manufacturing. This year, the company is expected to source approximately 30% to 40% of its products from China, thereby leaving it vulnerable to unpredictable tariff shocks and supply chain disruptions. While Dorman has worked to spread out its supply chain since the 2018–2019 tariff issues and has a strategy to combat such challenges, today's global political and trade situation is more unpredictable. Hence, it is probably harder for the company to manage. Strattec has a strong balance sheet with minimal exposure to debt capital. This is reflected in the total debt to capitalization of 5.25%, considerably lower than 27.8% of the composite stocks belonging to the industry. Thus, the company with significant financial flexibility will be able to invest in organic growth initiatives. Image Source: Zacks Investment Research While DORM's free cash flow remains healthy, a large share of it is being used to pay down debt and return capital to shareholders. With trade-related costs rising, this pattern may reduce near-term flexibility, especially when compared to STRT's more conservative stance, which offers greater financial flexibility. STRT is trading at a 5.15x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is at a discount compared with Dorman Products' 10.43x. Image Source: Zacks Investment Research Thus, Strattec, sporting a Zacks Rank #1 (Strong Buy), is a cheaper stock than DORM, which has a Zacks Rank #2 (Buy). STRT is working on reducing its China exposure, making it a better buy considering the positive developments surrounding the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report Dorman Products, Inc. (DORM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
